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  • Writer's pictureDauro Löhnhoff Dorea

How Can You Expand Your Oil and Gas Business in Brazil

Let's face it, the more you do business with emerging markets, the more profitable your company gets. And not just because you're selling more. You've got less downtime, increased traffic, increased sales. The opportunity is limitless.

Brazil is a large and untapped market. We're not just talking about PSAs, ultra-deepwater, offshore Brazil, and Brazil's share of the Amazon Basin. We're also talking about the pre-salt (a layer rich in hydrocarbons such as petroleum and natural gas) opportunities and tight oil. The oil and gas market has seen a great deal of growth in the last few years as a result.

For companies looking to expand into emerging markets – the process can be time-consuming and complicated – it becomes a difficult task to manage. If you want to work with the largest oil producer in South America, you'll need to know how to break into the Brazilian oil and gas market. And we are here to show you how.

What to Consider

Before investing in your Brazilian expansion plan, you should be aware of the unique challenges associated with the market. It is also important to understand indirect costs in Brazil, such as inflation, rising interest rates, and operating inefficiencies. Other challenges include:

  • The current economic crisis- consider how the current economic crisis could affect your business before expanding into Brazil.

  • Brazil's evolving tax structure, and high import tariffs

  • Inefficient customs processes and corruption

  • High business costs-due to foreign currency restrictions and regulations

  • Information barriers/ lack of transparency

  • Brazil's complex legal and regulatory system

  • Inadequate infrastructure

  • Government bureaucracy

Market Entry Strategy

Companies looking to enter the Brazilian market should consider hiring local partners in Brazil to help navigate the country's complex regulatory environment, in addition to potential joint venture partners with in-depth knowledge in specific sectors.

Moreover, to enter into the oil and gas business in Brazil, foreign firms must have a legal representative. It is recommended that U.S. firms not established in Brazil consider partnering with a local firm rather than trying to register on their own.

Secure a supplier's registration with Petrobas (the state-owned Brazilian multinational corporation in the petroleum industry) through this site:

The U.S. Foreign and Commercial Service can also assist whenever you are considering doing business in the market and their Advocacy Center helps with bidding on public procurements.

Finally, if a trade barrier to entering the oil and gas business in Brazil exists, report it through the Department of Commerce's Office of Trade Agreements, Negotiations and Compliance or the U.S. Commercial Service.

Expand Your Horizons With Ultrabrics

Expanding into another country not only means having a local presence but also building a team with an understanding of what the market wants and needs.

For a business to be competitive, it must have a targeted approach. That is why you should find an expert who can research your target market on a local level, as well as on a market level, without wasting your time and money. One that knows the industry in and out. And this is why Ultrabrics is your ideal choice.

We are A+ rated by the BBB and we pride ourselves in our expertise and quality services. With a special focus on the Brazilian market, our vast network and experience give us extensive insight that helps our clients maximize their potential.

We take care of all aspects of international business development on a market-by-market basis. From pre-market research to post-market action, we've got you covered. Contact us today.

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